Financial Performance - Net sales for Q3 2024 were $42.9 million, a decrease of 8.2% from $46.7 million in Q3 2023[2] - Gross profit increased by 116.5% to $6.5 million, with a gross profit margin of 15.1%, up from 6.4% in the prior year[2][6] - Net loss improved to $7.0 million, or a diluted loss per share of $0.69, compared to a net loss of $14.7 million, or $1.45 per share, in Q3 2023[2][7] - Adjusted EBITDA rose to $2.5 million from a loss of $1.5 million in Q3 2023, with an adjusted EBITDA margin of 5.7% compared to (3.2)% in the prior year[2][8] - Net loss for the nine months ended September 30, 2024, was $12,571 thousand, an improvement from a net loss of $37,767 thousand in the same period of 2023[25] - The company reported a loss from continuing operations of $7,016 thousand in Q3 2024, an improvement from a loss of $14,678 thousand in Q3 2023[24] - Adjusted EBITDA for the same period was $2,450,000, compared to an adjusted EBITDA loss of $1,505,000 in the prior year, representing a significant turnaround[27] - The company's adjusted EBITDA as a percentage of sales improved to 5.7% from a negative 3.2% year-over-year[27] Segment Performance - Ascent Chemicals segment net sales increased by 4% to $20.9 million, with adjusted EBITDA rising 47% to $1.5 million[9] - Ascent Tubular segment net sales decreased to $22.0 million from $26.7 million, but adjusted EBITDA increased significantly to $2.4 million[10] - Specialty Chemicals sales increased by 4.1% to $20,878 thousand in Q3 2024 compared to $20,052 thousand in Q3 2023[24] - Operating income from Tubular Products improved to $1,653 thousand in Q3 2024 from a loss of $620 thousand in Q3 2023[24] - Specialty Chemicals segment reported a net income of $367,000, a recovery from a net loss of $11,498,000 in the previous year[27] - Tubular Products segment achieved a net income of $1,653,000, compared to a net loss of $620,000 in the same quarter of 2023[27] Cash and Assets - The company had $8.5 million in cash and cash equivalents and no debt outstanding as of September 30, 2024[11] - Cash and cash equivalents at the end of the period increased to $8,547 thousand in Q3 2024 from $730 thousand in Q3 2023[25] - Total assets decreased to $148.6 million from $163.3 million at the end of 2023[22] Cost Management and Strategy - The company has implemented aggressive cost management and product line optimization strategies to improve profitability[4] - Interest expense decreased significantly to $124 thousand in Q3 2024 from $1,063 thousand in Q3 2023[24] - The company incurred acquisition costs of $2 thousand in Q3 2024, compared to $274 thousand in Q3 2023[24] - Total depreciation expense for the three months was $1,438,000, slightly down from $1,522,000 in the same quarter of 2023[27] - The company incurred goodwill impairment of $11,389,000 in the previous year, which did not recur in the current quarter[27] - The company reported a total of $60,000 in non-cash lease expenses for the quarter, down from $63,000 in the prior year[27] - Restructuring and severance costs were recorded at $208,000 for the nine months ended September 30, 2024, compared to $90,000 in the same period of 2023[27] Future Outlook - Management expects revenue growth in the specialty chemicals segment to begin in 2025 due to ongoing business development efforts[3]
Ascent Industries (ACNT) - 2024 Q3 - Quarterly Results